Question: Please use this information to answer the question below: A US firm's expected Accounts Payables from UK due in 90 days Current Spot Rate

Please use this information to answer the question below: A US firm's

Please use this information to answer the question below: A US firm's expected Accounts Payables from UK due in 90 days Current Spot Rate (SR) for GBP The 90-day Forward Rate for GBP GBP 5,000,000 $1.56 $1.58 If the US firms uses a forward hedge, estimate the cost of hedging the payable if the spot rate for GBP 90 days later turns out to be $1.63

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